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Britannia likely to manage 6% rise in profit but weak volume growth might dent margin
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Britannia likely to manage 6% rise in profit but weak volume growth might dent margin
Aug 3, 2022 12:07 PM

Share Market Live

NSE

Britannia is all set to report its quarterly financial results on Thursday. The FMCG giant is widely expected to clock pricing-led growth though slowing volume growth is likely to keep its margin under pressure.

Analysts in a CNBC-TV18 poll expect Britannia's net profit for the April-June period to come in at Rs 410 crore, which would mean a 5.9 percent increase compared with the corresponding period a year ago.

They estimate 10.2 percent year-on-year growth in the company's revenue for the three-month period to Rs 3,750 crore.

Investors will closely look out for the management's commentary on inflation and demand. The company's earnings come at a time when the FMCG sector is reeling against margin pressure on account of surging input costs thanks to a broad surge in commodity rates.

The analysts expect Britannia's EBITDA — or earnings before taking into account the impact of components such as taxes and interest — to increase four percent on year to Rs 576 crore.

Britannia's margin — or the the amount by which a business's revenue exceeds its costs — is likely to drop by 90 basis points to 15.4 percent compared with the year-ago period.

As of Wednesday, the Britannia stock has declined 3.4 percent in three back-to-back trading sessions.

First Published:Aug 3, 2022 9:07 PM IST

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